Global Essential Oils Market Research Report: Forecast (2024-2030)

Market Definition

Essential oils are concentrated oils derived from plants and are known for having natural essences. They smell great, help reduce stress & treat fungal infections, and induce sleep. They can be extracted from almost any plant substance, like flowers, tree bark, etc. Some of the most commonly used essential oils available in the market include tea tree, rosemary, lavender, eucalyptus, and citrus, among many others. These oils are made up of complex, unpredictable chemical compounds that have antifungal, antibacterial, anti-inflammatory, and antiviral properties. These oils, unlike most conventional medicines and drugs, have no significant side effects.

Market Insights & Analysis: Global Essential Oils Market (2024-30):

The Global Essential Oils Market is estimated to grow at a CAGR of around 8.8% during the forecast period, i.e., 2024-30. The rising consumer beliefs on the healing benefits of essential oils without any side effects, coupled with their mounting utilization across different end-user verticals like personal care & cosmetics, healthcare, etc., are the key aspects promoting growth. The global production & consumption of essential oils are continually surging, and they are being adopted obsessively for household, commercial, and industrial applications. As more and more people are increasingly focusing on their health & well-being, and aromatherapy is being perceived positively on a larger scale, thus essential oil sales are skyrocketing.

The leading Essential Oils companies across the globe are adopting different sales strategies like multi-level marketing to expand their customer base & business prospects. While essential oils are being sold rigorously through retail outlets, companies have also directed their focus on providing these products through e-commerce platforms. With this, customers now have convenient access to essential oils, along with discounts & offers.

Furthermore, the rising consumer inclination toward organic & plant-based personal care and food & beverages is compelling companies to adopt natural products. It is prominently due to stringent regulations for using environmentally friendly ingredients in the cosmetics and food & beverage sectors. As a result, the mounting adoption of plant-based products, lacking synthetic & animal-derived ingredients, is benefitting the Essential Oil Market growth globally.

Global Essential Oils Market Driver:

Rising Aromatherapy Practices & Growing Usage of Essential Oils in Food & Beverages to Thrive the Market – Nowadays, consumers have been showing a heightened focus on health & personal care, leading to a surge in visits to spa and relaxation centers for aromatherapy sessions utilizing essential oils. This trend is further amplified by the flourishing tourism and hospitality industries, contributing significantly to driving the Global Essential Oil Market growth.

Besides, several studies cite that essential oils play a crucial role in naturally preserving foods by showing antibacterial activities in foods like meat, fish, cooked rice, and milk & other dairy products. As a result, the rising consumer interest in organic products has made these oils a significant ingredient in the food & beverage industry, with the growing utilization of them by food manufacturers to enhance the aesthetics as well as nutritional & functional properties of food products. This, in turn, is aiding in enhancing the Essential Oils Market share in the future.

Global Essential Oils Market Challenge:

Significantly High Prices of Essential Oils to Hinder the Industry Growth – Since essential oils are concentrated in nature, a large number of flowers are consumed in their production, owing to which reserves of fragrant plants are declining gradually. As a result, the ever-growing demand against limited supplies of flowers is leading to high prices of these oils worldwide, i.e., increasing the consumer inclination toward substitutes like synthetic oils. Hence, these dynamics would pose a challenge to the expansion of the Global Essential Oils Market over the forecast years.

Global Essential Oils Market Trend:

Expanding Need for Natural Ingredients to Stimulate Industry Expansion – The increasing consumer preference for natural and organic products across various industries has led to a notable shift from synthetic to natural alternatives, thus influencing the Global Essential Oils Market. Essential oils have gained prominence as natural additives and flavor enhancers in preserving a wide range of food items, including confectioneries, meats, beverages, and pickles.

Additionally, their application extends to creating chemical preservatives, repellents, edible film coatings, and fragrances for paints & detergents, thus their adoption as a natural add-on is a key trend shaping the market outlook. Moreover, their potential health benefits have also surged their demand in pharmaceutical & medical sectors, attributed to their antibacterial properties, muscle-relaxing effects, and skin-soothing capabilities, making them sought-after for healing skin irritations and providing relief from various conditions.

Global Essential Oils Market (2024-30): Segmentation Analysis

The Global Essential Oils Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2030 at the global, regional, and national levels. In accordance to the analysis, the market has been further classified as:

Based on Type:

• Citrus
• Tea Tree
• Lavender
• Eucalyptus
• Rosemary
• Others (Chamomile, Peppermint, etc.)

The versatile Citrus Oils with fresh, zingy, and uplifting aromas hold the potential share of the Global Essential Oils Market, as they can be utilized for multiple applications. Citrus essential oils are obtained from the fruit skin of lemon, orange, grapefruit, and sweet lime, among others, and are rich in nutritional content, having immune-boosting, stress-relieving, & antioxidant properties.

Furthermore, their growing usage for various purposes like fragrances in apparel & cleaning products, coupled with the mounting demand for plant extracts & natural ingredients as flavorants & colorants in food & beverages, are accelerating the growth of the Essential Oil industry worldwide.

Global Essential Oils Market (2024-30): Regional Projection

Geographically, the Global Essential Oils Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Europe dominates the Essential Oils Market globally, and the same trend is likely to be followed during the forecast period as well. The region has highly developed end-user industries that have realized the benefits of various essential oil components, including carvone, carvacrol, citral, cinnamaldehyde, and p-cymene, among others, which are the flavoring substances used in food & beverages in the region. France, the leading perfume producer across Europe, is also amongst the top exporters of essential oils globally.

Besides, personal care & cosmetic product manufacturers across Europe are also substantially using these oils in their product offerings to cater to the growing consumer requirements for plant-based cosmetics. Moreover, the rising consumer inclination toward aromatherapy in countries like the UK, France, and Germany, owing to the surging consumer awareness of the numerous benefits of ethereal oils, is also augmenting the Europe Essential Oils Market.

Global Essential Oils Industry Recent Development:

• 2023: Aura Cacia, a prominent brand specializing in sustainably obtained essential oils, aromatherapy, and botanical items, has introduced its latest Air Care collection. This range includes blends of essential oils, room sprays, and toilet sprays, all crafted with 100% pure essential oils & without artificial fragrances.
• 2022: doTERRA introduced new natural & sustainably sourced essential oils. Eucalyptus essential oil and guaiac wood essential oil are among the new essential oils.

Gain a Competitive Edge with Our Global Essential Oils Market Report

• Global Essential Oils Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Essential Oils Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.